SALES &
DISTRIBUTION
MANAGEMENT
SUBMITTED TO:
Prof. A.N Bhattacharya
SUBMITTED BY :
Param jeet Singh
Preety Sharma
Ravi kr. Sinha
Shasank s.sahoo
Sambit Pradhan
Study of various
strategies and policies
Followed by
Amul
ACKNOWLEDGEMENT
2. Amul Offerings
5. Motivational strategy
6. Compensation policies
7. Distribution Networks
8. Competitors
9. bibliography
ABOUT AMUL
AMUL means "priceless" in Sanskrit. A quality control expert in Anand suggested the brand
name “Amul,” (Anand Milk Union Limited) from the Sanskrit “Amoolya,” Variants, all
meaning "priceless", are found in several Indian languages. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul
Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya
have made Amul a leading food brand in India. Today Amul is a symbol of many things. Of
high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of
the triumph of indigenous technology, of the marketing savvy of a farmers' organization and
have a proven model for dairy development. And have a proven model for dairy development
(Generally known as “ANAND PATTERN”).
Today, twelve dairies are producing different products under the brand name Amul.
Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud
for Gujarat and whole India.
Co-operative is generally operated not for the profit but for the betterment of consumer and
products. Their main objective is to serve people of the society with good quality of product with
as much as low price.
“AMUL” is the successful co-operative sector. The brand name itself indicates how AMUL is
separated over the country and world. AMUL gets so many awards for its productivity and
performance. Amul is Asia’s no.1st and 2nd in world, which is a matter of proud for India. In
our country every men, women and now children know what AMUL is. This makes the
popularity and contribution of the dairy industry.
AMUL is co-operative organization and they also doing social works. They provide employment
to the village people. They also provide health center and education facility to the villagers.
AMUL’S OFFERINGS:
Breadspreads:
Amul Butter
Amul Lite Low Fat Breadspread
Cheese Range:
Pure Ghee:
Milk Powders:
Fresh Milk:
Curd Products:
Brown Beverage:
Marketing activity of AMUL is performed by GCMMF (Gujarat Co- operative Milk Marketing
Federation). Total 90% of AMUL’s products marketed by except for liquid milk. Till 1960
AMUL was marketing their product on its own. But there were many problems against such
direct marketing and therefore the idea of marketing federation was turned into establishment of
GCMMF. Thus the federation was established in1972 for marketing the product of all dairies in
Gujarat.
RECRUITMENT OF SALES FORCE IN AMUL
Recruitment
Recruitment forms the first stage in the process which continues with selection and placement of
the Sales force in the company. The selection process starts with the intent for recruitment by the
sales department head. These intents specify the reasons why recruitment is to be made. These
intents are conveyed to the personnel department. The personnel department has to check the
financial implication of the recruitment to find out whether the additional expenses would be
within the budgetary provision if other allowances were determined.
It is a positive action as it involves inviting people to apply. Recruitment has been regarded as
the most important function because it helps in bringing the right people to the company.
➢ Advertisement:-
For the recruitment, AMUL consider this particular source. They give Advertisement in local
newspaper and other newspaper for the post in the sales department with complete job
description.
➢ Campus Interview:-
This is second option that AMUL consider. Recruiters are sent to educational institution where
they find suitable candidate. AMUL go through this option. They have various famous
institutions like IIM, IRMA etc. But this type of recruitment is done for the upper level positions
i.e. Assistant managers, managers etc.
➢ Employee Exchange:-
An employment exchange is an office set up for bringing together as quickly as possible
candidates searching for employment and employees looking for prospective employees.
➢ Employee Referrals:-
AMUL also considers this option for recruitment. Friends and relatives of present employees are
also a good source from which employee may be drawn.
➢ Unsolicited Application:-
Some candidates send in their application without any invitation from the organization. A
recruiter can use these unsolicited applications for appointment and when vacancies arise.
AMUL considers this option also for recruitment of the sales force in the firm.
Requirement of Recruitment:-
There are so many reasons for recruitment process. Some of them in AMUL are:-
New Expansion.
New Planning.
Retirement.
➢ Selection:-
Selection either internal or external is a deliberate effort of the organization to select a fixed
number of personnel from a large number of applicants. The primary aim of employee selection
is to choose those persons who are most likely to perform their jobs with maximum effectiveness
and to remain with the company. Thus, in selection, an attempt is made to find a suitable
candidate for the job. In doing so naturally many applicants are rejected. This makes selection a
negative function.
Following are the steps followed are as under:-
Application
Initial interview of the candidate.
Employment tests.
Interviews.
Checking references.
Physical or medical examination.
Final interview and induction.
During this, various steps like Biographic Data checking, Education, Experience, Personal
Detail, Aptitude Test, Interest Test, Intelligence Test, Performance Test, Personality Test are
considered. Different types of interviews are conducted like:
➢ Preliminary interview.
➢ Extensive interview.
➢ Stress interview.
➢ Discussion interview.
➢ Structured interview.
➢ Non – structured interview.
➢ Group interview.
➢ Final interview.
➢ Induction:-
Induction is introducing an employee to the job and to the organization. The primary purpose of
induction is to give information about organization about organization so that he/she works
comfortably.
Generally induction conveys three types of information:-
1) General information about the daily work routine.
2) A review of the organization history, objectives, operation, products, visiting different
department.
3) Detail information of the organization policies, work rules and benefits given to employee.
At AMUL there is total 20 days induction program, where they include:
1) Internal Induction:-
The period of this is 5 to 6 days. During this, new recruit gets familiar with the Sales department
of organization.
2) External Induction:-
During external induction program of 6 to 7 days employee is taken at all the plants, the chilling
center. As AMUL is a co – operative sector an employee should get the feel of village and for
that he/she should visit at least 2 or 3 villages.
Finally in 10 days of induction employee get familiar with various departments also that is just to
get acquaintance of department like milk procurement department, purchase department, account
department etc.
Module Preparation
Training
Feedback
Need of Training:-
In AMUL training provided to all level employee of different department.
There are different reasons for training. Some of them are:
When new technology introduce in union.
Increase quantity and quality of product.
To meet organisation need at all time.
For better economic use of materials.
To prepare the present employees for higher assignments so that
they may promote from within.
Effect of Training:-
AMUL is a largest co – operative sector. They provide training to their employees on regular
basis and whenever needed. After provide training they get the best result from that. Some
results are:
Increased effectiveness of work.
Increased dedication feeling for the work.
Higher productivity
MOTIVATIONAL STRATEGY
Motivation is the process of indoctrinating sales people with the unity of purpose to maintain a
harmonious relationship among each other in the sales organization. Motivation is the amount of
effort that the sales person desires to expend on each of the activities or the tasks associated with
the sales job.
The selection of the motivational tool is the most crucial step in the design process and that is
what AMUL also kept in mind.
HRA:-
House rent allowance is given to employees as an incentive. HRA is given to that
employees who are not leave in quarter allotted by union.HRA is deciding by
management committee every three year according to designation of employee.
Travel Allowance:-
Travel Allowance is given to employees as incentives. Travel allowance is deciding by
management and committee according to designation of employee.
Medical:-
For the medical expanse of employees this allowance is given. Medical allowance is
deciding by management committee according to designation of employee. This
allowance is given to employee for their children education.
Bonus:-
Individual employees may receive additional comensation payments in the form of
bonus, which is a one time payment that does not become part of the employee’s basic.
In AMUL bonus is paid to employee on regular basis on Diwali. According to the
payment of bonus Act.1965 organisation must paid bonus at a rate of 8.33%. AMUL
follow this rule and paid minimum 8.33% of basic + D.A + Adhoc as a bonus. Some time
they also paid more than 8.33% of bonus to employees.
Production Bonus:-
In AMUL production bonus is also paid to employees. management decides this bonus.
In this bonus they decide some amount per day and than that amount is multiply with
working days of employees. whatever the resulted amount is given to employees as a
production bonus. For example if management decide Rs. 4 per day and one employee
work 200 days in a year than
Production Bonus = 200*4
Production Bonus = 800
So that employee get Rs. 800 as a production bonus.
In AMUL the other allowance is also given like Performance Allowance. According to Grade
this allownce is given. In AMUL if any employee want advance then there will be provision of
such facility. In AMUL they also have given LTC every four year to their employees. this mount
paid according to designation of employee
In AMUL, Managing director signs the promotion letter getting recommendation from
Administrative Department. They have promotion policy on the period 3 or 5 year. In AMUL
Retirement Age decided is as 58 years.
Seminar:- In AMUL seminars are organized for development purposes.For that, managerial
person participate in seminar conducted by out side consultant company engaged. The seminar is
conducted out side the premises of AMUL . In such type of seminar,sales people are motivated
to achieve their targets,they are encouraged to improve their leadership skills and supervision
Conference:- The conference is ideally suited to learning problems and issues and examining
them from different angles. In AMUL such conference are mainly arranged for managerial
development. In this conference the discussion is focused on quality assurance, problem solving
etc. The trainees as members can learn from others..
The other motivational and development programmes arranged by AMUL are within the
premises. The development programmes are arranged on various topic like anger free life, mind
power development, positive changing, personality development etc. Also program on effective
leadership, motivation are arranged for the employees. This help managerial persons to maintain
good relation with employees.
The success of any sales organization depends on the achievement of the sales goal set for the
short-term as well as long –term periods of time. While other programmes like sales force
recruitment, training and motivation are a cost to the company, sales force compensation deals
with the management of the performance of the sales people for generating revenue for the firm.
Sales people tend to increase and manage their performance by linking it to the compensation
they receive from the sales organization.
In AMUL,compensation generally comprises of the cash payments which include fixed salary,
bonus and shared profit. Good compensation plan have a salutary effect on sales people. They
are happier in the work; co – operative with management and productivity is up. There can be
both monetary and non – monetary forms of compensation too.
Wages in the widest sense mean any economic compensation paid by the company under some
contract to his sales force for the services rendered by them. They are basic salary and
allowances. The basic wage is the remuneration, which is paid or payable to the sales person in
terms of his contract of employment for the work done by him. Allowance includes dearness
allowance, bonus, overtime pay etc.
As there are three levels of management in AMUL, compensation is decided on the basis of
their designation,grade and on the basis of appraisal done.
Method of remuneration payment:-
Time wage:- It is based on the amount of time spent wages measured on the
basis of unit of time.
Piece wage:- It is based on the amount of work performed.
Compensation structure:- There are 3 sound primary compensation structures.
Internal Equity.
External Competitiveness.
Performance based payment.
Incentive:-
In the word of Hummel and Nickerson, Wage incentive:- “refers to all plans that
provide extra pay for extra performance in addition to regular wages for a job.”
A system of remuneration payment, which would maintain both quality and quantity, is
called incentive remuneration plan. There are three broad categories of incentive schemes
as classified. They are:
Simple incentive plan.
Sharing incentive wage plan.
Group incentive plan.
Remuneration Legislation:-
The government has enacted legislative measures to protect the wage earners rights and
to emphasis managerial obligation in this regard. The main wage legislation are:
The payment of Wage Act,1936.
The minimum wages Act,1948.
The payment of Bonus Act, 1965.
Pay policy:-
According to the report of the third central pay commission:- “A sound
compensation package should encomoass factor like adequacy of wage, social
balance, supply and demand, fair comparison, equal pay for equal work.”
Fair wages should be fair from the point of view of both employer and employee. While
referring to basic wage levels, three terms are extensively used. They are:
Minimum Wages.
Fair Wages.
Living Wages.
The above mentioned terms are used by the report of the committee on fair wages set up
government of india in 1948, to determine the principle on which fair wages should be
based and to suggest how these principles should be applied. According to this
committee, the minimum wage should represent the lower limit, the next higher level is
the fair wage and the highest level is the living wage.
DISTRIBUTION NETWORK OF AMUL
Online (Internet):
Amul cyber store
Ice cream cyber store
Retailers:
Currently online are Chennai and Calcutta
Chennai,Kolkata,Nasik,Jalgaon,Aurangabad,Delhi,Raipur,Jodhpur,Udaipur,Pune,Siliguri/
Durg,Kota.
Wholesalers:
Producer Co operatives:
This type of distribution organization is formed by agricultural producers for selling their
produce in the local market.
Head office
Depot...1 Depot...n
Second leg
WD…1 WD…n
Third leg
Retail…1 Retail...n
Customers
MARKET LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Enterprise resource planning: AMUL has implemented an ERP program as low as Rs. 3
crores in collaboration with TCS ltd. The company uses it .The data right from the procurement
from the farmers till the delivery of goods to the retailers is fed into the system. The software
enabling the channel members to use for the synchronized working and best possible utilization
of the available resources maintains details regarding the inventory management.
Market logistics deals with the implementation of the SCM of the company.
Upstream Channel- In this, milk is procured from the farmers to the manufacturing units.
1. In the first step, the milk is taken to the VCS by the farmers on foot or bicycles in
small quantities
2. The second step involves the transportation of milk from the co-operatives to the
manufacturing units this is done in special trucks which are equipped with tankers
to carry milk.
Downstream Channel-It is the distribution part of the supply chain i.e. from the manufacturing
units to the retailers.
1. First leg of transport is from the manufacturing unit to the company depots. This
is done using 9 and 18 MT trucks any lesser quantity will be uneconomical to the
company there fore is some time the quantity ordered is lesser then club loading is
done which means that the product ordered is supplied with some other products.
a. Frozen food the temperature of these trucks is kept below -18˚C
b. Dairy wet the temperature of these trucks is kept between 0-4˚C
2. Second leg is from the depot to the WD’s, this transport is carried out in
insulated 3 and 5 MT TATA 407’s here a permanent dispatch plan (PDP) is
prepared where the distributor plans out the quantity of various products to be
ordered on a particular date.
3. Third leg this is the flow of good from WD’s to retailers, a beat plan is prepared
and transportation is done on auto-rickshaws, rickshaws and bicycles.
Some Amul Parlors in the country run by the company or its wholesale dealers:
Delhi Metro Rail Corporation
The Somnath Temple
National Institute of Design
Infosys Technologies in Bangalore, Mysore & Pune
Wipro campus in Bangalore
L.J.College, Ahmadabad
Ahmedabad Airport
Surat Municipal Corporation
Delhi Police
Gujarat State Road Transport Corporation
Jubilee Mission Medical College, Trichur ,Kerala
Sanjay Gandhi Hospital Parlour, Amethi
Indian Institute of Management, Kolkata
Café Amul, MDG, Gandhi nagar
COMPETITORS
Competitors are the ones who produce & sell the same product as producer by the
unit competitors affect the business with several caused. The main rivals are
following.
RICH MILK.
SARDAR MILK.
NESTLE.
BRITANIA
CHEESE OF LE – BOEN
The Company insists on honesty, integrity and fairness in all aspects of its business
and expects the same in its relationships. This has earned it the trust and respect of
every strata of society that it comes in contact with and is acknowledged amongst
India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of
India'.
The Company's principal activity is the manufacture and sale of biscuits, bread,
rusk, cakes and dairy products.
The company is a growing and profitable one. Between 1998 and 2001, the
company's sales grew at a compound annual rate of 16 per cent against the market,
and operating profits reached 18 per cent. More recently, the company has been
growing at 27 per cent a year, compared to the industry's growth rate of 20 per
cent. At present, 90 per cent of Britannia’s annual revenue of Rs2,200 crore comes
from biscuits.
RICH MILK ,, manufacturer and exporters of value added milk products such as
skimmed milk powder, pasteurized milk, dairy whitener, pure ghee, full cream
milk powder.They are manufacturers of fresh cow milk, dahi, lassi, paneer,
shrikhand, amrakhand, basundi, desi ghee, sterilised flavour milk.
We are Merchant Exporter & Importer of All Dairy Products. We are into the
successfully in business for past 10 years.
We are regularly Selling: butter, pure ghee, cow ghee, yellow butter, white butter,
buffalo ghee, skim milk powder, whole milk powder, fresh cream.
www.Google.co.in
www.amul.com/products.html
en.wikipedia.org/wiki/Amul
www.amulicecream.in/
business.mapsofindia.com/sectors/manufacturing/amul.html
www.amulgreetings.com/
http://www.nestle.in/
www.britannia.co.in/